Johannesburg -- Tsogo Sun, South Africa’s biggest hotel and gaming company, said fiscal full-year profit rose 19 percent as an expansion helped boost rates for rooms and revenue from gambling.
Net income climbed to 1.9 billion rand in the 12 months through March from 1.6 billion rand a year earlier, the Johannesburg-based company said in a statement today.
Net gaming wins advanced 5 percent to 6.8 billion rand, revenue from rooms jumped 16 percent to 2.2 billion rand, while food and drink sales were up 22 percent to 1.06 billion rand.
Tsogo Sun spent 2.4 billion rand increasing its footprint in South Africa and the rest continent through acquisitions and improvements to existing hotels and casinos to compensate for slower growth in its main home market.
While “continued growth in profitability” is encouraging, the sustainability of the rate of growth is “uncertain due to weaker second-half trading, on-going macroeconomic pressure and weak consumer demand,” chief executive Marcel Von Aulock said in the statement.
The stock has advanced 8.2 percent this year, valuing the company at 34 billion rand.
This compares with a 12 percent gain for Sun International. - Bloomberg News